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Extreme Sports Company makes snowboards, downhill skis, cross-country skis, skateboards, surfboards, and in-line skates. The company has found it beneficial to split operations into two
Extreme Sports Company makes snowboards, downhill skis, cross-country skis, skateboards, surfboards, and in-line skates. The company has found it beneficial to split operations into two divisions based on the climate required for the sport: Snow Sports and Non-Snow Sports. The following divisional information is available for the past year: (Click the icon to view the information.) Read the requirements. 1. Compute each division's sales margin. Interpret your results. First enter the formula, then calculate each divisions sales margin. (Enter the sales margin as a percent rounded to the nearest whole percent.) - Sales margin A Requirements X -line skates. The Snow Sports and Snow Extreme Sports Co company has found Non-Snow Sports. (Click the icon Read the requirem 1. Compute each d 1. Compute each division's sales margin. Interpret your results. 2. Compute each division's capital turnover (round to two decimal places). Interpret your results. 3. Use your answers to Question 2 along with your answers to Question 1 to recalculate ROI using the expanded formula. Do your answers agree to the ROI calculations using the original formula and presented in the divisional information? to the nearest First enter the form whole percent.) Print Done i Data Table Sales Operating Income Total Assets Current Liabilities Snow Sports $ 5,000,000 $ 850,000 $ 4,900,000 $ 420,000 Non-Snow Sports $ 7,800,000 $ 1,326,000 $ 6.900.000 $ 670.000 Extreme's management has specified a target 13% rate of return. ROI 17.3% 19.2% Print Done
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